2 Great Stocks to Own Heading Into a Recession
From the pundits to the analysts to the economists, most experts now think there is a strong likelihood of a recession later this year or in early 2023. As the calls grow louder, it's not a bad idea to buy some stocks that can withstand and perform better in a tougher economic environment.
One area to look at is bank and financial stocks, many of which benefit from rising interest rates. However, the key is to find ones that are also more insulated against a recession, which includes declining economic growth and therefore less spending and investing by businesses and consumers.
The Federal Reserve each year places the largest and most important banks and financial companies in the U.S. through a hypothetical severe recession-like scenario to see how these companies would hold up during an intense economic shock. This year, the Fed's hypothetical scenario included unemployment surpassing 10% sometime between the fourth quarter of 2021 and the first quarter of 2024. Stock prices would fall 55%, and commercial real estate prices would dip 40%.
Source Fool.com
